FM Arun Jaitley has presented the Union Budget for 2018-19 in Parliament. Here are the Key Highlights :
* Fiscal deficit is 3.5% of GDP at Rs 5.95 lakh crore in 2017-18. Projecting fiscal
deficit to be 3.3% of GDP in the next fiscal
* Rs 21.57 lakh crores transferred as net GST to states as against projection of Rs 21.47
* 85.51 lakh new tax payers filed income tax returns in FY17
* NO PERSONAL INCOME TAX CHANGES PROPOSED IN BUDGET
* Growth in direct taxes (till Jan 15) is 18.7 %
* Surcharge of 10 pc on income above Rs 50 lakh but less than Rs 1 cr to be continued
next year; 15 pc on income above Rs 1 cr to also continue.
* 100% tax deduction is allowed to co-operative societies
* Corporate Tax of 25% extended to companies with turnover up to Rs 250 cr in
financial year 2016-17
* Incentives for Senior citizens: Exemptions in income of Rs 10,000 from Banks FD and
* Senior citizens to get Rs 50,000 per annum exemption for medical insurance under Sec 80D
* Rs 7.5 lakh per senior citizen limit for investment in interest-bearing LIC schemes
doubled to Rs 15 lakh
* Standard deduction of Rs 40,000 allowed for transport, medical reimbursement for
salaried tax payers
* Govt to reduce hardships faced in realty deals; no adjustment to be made in case circle
rate does not exceed 5 pc of sale consideration
* Rs 8,000 crore revenue lost due to standard deduction allowed to salaried employees
* Rs 7,000 cr revenue forgone on account of lower corporate tax for Rs 250 cr turnover cos
* Rs 19,000 cr revenue loss on direct tax in last fiscal
* LONG TERM CAPITAL GAINS EXCEEDING RS 1 L AKH WILL BE TAXED AT 10%
* Short term capital tax remains at 15%
* A tax on distributed income at 10%
* Education cess increased to 4 pc from 3 pc to collect additional Rs 11,000 cr
* GST revenue will be received only for 11 months, that will have an effect on balance
* GST collections projection pegged at Rs 7.43 lakh crore in full year 2018-19 as against
Rs 4.44 lakh crore in nine months of current fiscal.
* Govt makes PAN mandatory for any entity entering into a financial transaction of Rs 2.5
lakh or more.
Imports and Exports
* Customs Duty on certain products, such as mobile phones and televisions has been
increased, to provide a fillip to ‘Make in India’
* Social welfare surcharge of 10% on imported goods.
* Central Board of Excise and Customs renamed as Central Board of Indirect Taxes and
The government’s emphasis will be on generating higher incomes for farmers, by helping
them produce more with lesser cost, and in turn, earn higher income for their produce.
* Jaitley stressed on the fact that India’s agricultural production is at a record high level
today. 275 million tonne foodgrains and 300 million tonne fruits and vegetable have been
produced in the country.
* The FM said the government wants farmers to earn 1.5 times the production cost, and
the Minimum Selling Price (MSP) for the Kharif Crops has been set at 1.5 times the
produce price. Jaitley said the Centre will work with states to ensure that all farmer get a
* Agricultural market and infra fund of Rs 2000 crore fund will be set up to strengthen the
* A sum of Rs 500 cr will be allocated for Operation Green to be launched. It will promote
* Extend the facility of Kisan credit card to fisheries and for animal husbandry
* Rs 10,000 crore set aside for Fisheries and Aquaculture Development Fund
* Rs 10,000 crore set aside for animal husbandry infra fund
* Propose to launch a restructured bamboo mission with a fund of Rs 1200 crore .
“Bamboo is green gold,” Jaitley said.
* Agricultural credit target increased from Rs 8.5 lakh crore to Rs 11 lakh core
* Special scheme to manage crop reduce in Haryana, Punjab and Delhi to reduce pollution
* 8 crore poor women will get new LPG connections.
* PM Saubhagya Yojana: 4 crore poor people will get power connection.
* The government will spend Rs 16,000 crore on this scheme.
* Govt plans to construct 2 crore toilets in next fiscal year under Swach Bharat Mission
* Government target house for all by 2022. 51 lakh houses have been constructed
affordable houses in rural and further 50 lakh houses in urban areas.
* 1 cr houses to be built under Pradhan Mantri Awas Yojana in rural areas
* National livelihood scheme gets Rs 5,750 crore .
* In 2018-19, ministries will be able to spend Rs 14.34 lakh crores for creation of livelihood
in rural areas.
* Govt gives Rs 9,975 crore for social security schemes for the next fiscal year.
* Govt to increase digital intensity in education. Technology to be the biggest driver in
improving quality of education: FM Jaitley
* Rs. 1 lakh crore allocated to revitalisation and upgradation of education sector.
Promoting learning based outcomes and research.
* By 2022, every block with more than 50 per cent ST population will have Ekalvya schools
at par with Navodaya Vidyalayas
* Aims to move from black board to digital board schools by 2022.
* PM reasearch fellows: Govt will identify 1000 Btech students each years and provide
them to do PHDs in IIT and IISc, while also teaching undergraduate students once a week
at that time.
* Aayushman Bharat programme: 1.5 lakh centres will be set up to provide health facilities
closer to home. Rs 1,200 crore to be allocated for this programme
* Flagship National Healthcare protection scheme, with approximately 50 crore
beneficiaries. Up to Rs 5 lakh per family per year for secondary and tertiary care
hospitalisation. World’s largest government-funded healthcare programme.
* Universal health coverage will be expanded after seeing the performance of the scheme
* Rs 600 crore allocated for tuberculosis patients, at the rate Rs 500 per month during the
course of their treatment.
* Jaitley announces setting up of one medical college for every three parliamentary
constituencies, with 24 New government medical colleges also being envisioned.
Government also will work on upgrading hospitals to medical colleges
* PM Jivan Bhma Yojana has benefited 5.22 crore families
* Govt will expand PM Jan Dhan Yojana: Al 16 crore accounts will be included under micro
insurance and pension schemes.
* 1.26 cr accounts opened under Sukanya Samriddhi Scheme
* Social inclusion schemes for Scheduled Castes – Rs 52,719 crore
* Social inclusion schemes for Scheduled Tribes Rs 39,139 crore
* Rs 3,794 crore allocated to the MSME sector in the form of capital support and interest
subsidy By 2022, every block with more than 50 per cent ST population will have Ekalvya
schools at par with Navodaya Vidyalayas
* Rs 3 lakh crore target has been set for the Mudra Yojana
* Rs 4.6 lakh cr sanctioned under MUDRA Scheme
Petroleum/ Diesel Sector
* Excise on unbranded diesel cut by 2 rupees to 6.33 rupee/ltr
* Excise on unbranded petrol cut by 2 rupees to 4.48 rupee/ltr
* Govt will contribute 12% of the wages of new employees in EPF in all sectors for next 3
* Women contribution to EPF reduced to 8% for first 3 years
* India needs investment of Rs 50 lakh crore in the infrastructure sector
* Construction of new tunnel in Sera Pass to promote tourism
* Out of 100 smart cities 99 cities have been selected, with an outlay of Rs 2.04 lakh crore
* 10 prominent tourist sites will be made iconic tourist destinations, with an amalgamation
of private funding, marketing and branding
* Bharatmala project: To develop 35,000 KM under phase 1 with an outlay of Rs 5.35 lakh
* Govt to introduce pay-as-you-use system for toll payments
* Railway capex has been pegged at Rs 1.48 lakh crore , up from Rs 1.31 lakh crore last
* Eliminate unmanned railway crossing
* All stations with footfall of greater than 25,000 will have escalators.
* More stations and trains will progressively be built with WiFi and CCTV camera
* Govt to eliminate 4267 unmanned rail crossing in broad gauge in 2 years
* Allocates Rs 11,000 crore Mumbai rail network and Rs 17,000 crore for the Bengaluru
* 150 km of additional suburban railway networks to be set up in Bengaluru at the cost of
Rs 17,000 cr.
* Airport Authority of India (AAI) has 124 airports. Propose to increase the number by at
least 5 times 1 billion trips a year, Rs 60 cr has been allocated to kickstart the initiative
* UDAN Scheme to connect 64 unconnected airports across the country
* Govt to take additional measures to strengthen environment for venture capitalists and
* SEBI to consider mandating large corporations to meet 1/4th of their debt needs
* SEBI to mull asking large cos to meet 25% debt from bond market
* RBI norms to nudge companies to access bond market for funds
* Allocation to Digital India scheme doubled to Rs 3073 cr
* 5 lakh WiFi HotSpots to provide Broadband access to 5 crore rural citizens, at the cost of
Rs 10,000 cr.
* Government will take measures to stop cryptocurrency circulation, as it is not considered
* Government will explore the usage of Blockchain technology.
* AADHAAR FOR CORPORATES? Govt will evolve a scheme to assign a Unique ID for
* Disinvestment target of Rs 80,000 crore for FY19
* National Insurance Co, Oriental Insurance Co and United Assurance Co to be merged
into one entity and subsequently listed
* Govt revises divestment target for the current fiscal to Rs 1 lakh crore for FY 18.
* Recapitalisation will pave the way for public banks to lend an additional Rs 5 lakh crore
* Rs 7,148 cr allocated for textile sector
* Defence outlay raised to Rs 2.82 lakh crore in 2018-19 from Rs 2.67 lakh crore in current
* Food subsidy to rise to Rs 1.69 lakh crore in 2018-19 from Rs 1.4 lakh crore in current
* Emoluments for President set at Rs 5 lakh, Rs 4 lakh for Vice President, Rs 3.5 lakh for
* Emoluments for Parliamentrians: Law for increase in pay based on index to inflation
* Govt earmarks Rs 150 cr to commemorate 150 years of birth of Mahatma Gandhi